Question: answer this excerise question as soon as possible. Thanks... Question #4: (Marks: 15) Dotsero Technology, Inc., has a job-order costing system. The company uses predetermined
Question #4: (Marks: 15) Dotsero Technology, Inc., has a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs, The predetermined overhead rate in Department A is based on machine hours, and the rate in Department B is based on direct materials cost. At the beginning of the most recent vear, the company's management made the following estimates for the year: Department A 70,000 30,000 $195,000 $260,000 $420,000 Machine-hours Direct labour-hours Direct materials cost Direct labour cost Manufacturing overhead cost 19,000 60,000 $282,000 $520,000 $705,000 Job #243 entered into production on April 1 and was completed on May 12. The company's cost records show the following actual information about the job # 243 : Department A 250 70 B 60 120 Machine-hours Direct labour-hours Direct materials cost $1,100 $880 $840 $610 Direct labour cost At the end of the year, the records of Dotsero showed the following actual cost and operating data for all jobs worked on during the year: Department A 61,000 28,000 $156,000 $385,000 Machine-hours Direct labour-hours Direct materials cost 20,000 66,000 $284,000 $705,000 Manufacturing overhead cost REQUIRED: (Show your calculations) 1. Calculate the pre-determined overhead rates for Department A and B. (2 marks) 2. Compute the total overhead cost applied to Job # 243. (2 marks) 3. Calculate the mfg. Overhead applied for the whole year for each department (2 marks) 4. Calculate the under/over applied overhead for each department and indicate whether under or over applied
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